Key Metrics Point to Potential Undervaluation
Key metrics like the Puell Multiple and MVRV Z-Score indicate a possible undervaluation of Bitcoin. Technical data suggests a rebound target of $96,800 for BTC’s price. However, the possibility of a “dead cat bounce” or a leverage flush still generates caution among analysts.
Investors are on edge due to the conflicting signals coming from the Bitcoin market. Some key metrics suggest that the pioneering cryptocurrency is in an attractive “discount zone,” but other analyses warn of an imminent downside risk. Currently, Bitcoin price analysis is at a crucial turning point.
Information revealed by CryptoQuant indicates that the Puell Multiple, which compares miners’ daily revenue to their annual average, has returned to the discount zone, coinciding with Bitcoin’s recent drop to multi-month lows around $80,500. When this indicator falls below 1 (currently at 0.86), it means that miners are earning less revenue than usual, which could indicate financial pressure and potential capitulation.
Gaah, an analyst at CryptoQuant, highlighted that this level of the Puell Multiple indicates undervaluation, suggesting that the “market is pricing Bitcoin below its fair value.”
The last time this indicator was so low was in April 2025, with BTC around $75,000, a level that preceded a 50% rally to its previous all-time highs of $112,000 in May. The analyst added that, “generally, all major correction reversals have started precisely in these discount regions.”
Technical Signals and Expert Warnings
Complementing this picture, data from Capriole Investments reveals that Bitcoin’s MVRV Z-Score (which compares BTC’s market value to its realized value, adjusted for volatility) has fallen to a two-year low on November 22.
Typically, previous Bitcoin drawdowns have been accompanied by a notable drop in the MVRV Z-Score, ending when the metric crosses below the green line, a signal that Bitcoin is significantly undervalued.
With a value of 1.13, the MVRV Z-score is approaching this line, which could indicate the formation of a local bottom, similar to the levels at the end of 2023 that preceded an 80% price rally. This Bitcoin price analysis suggests cautious optimism.
As for short-term targets, data from TradingView shows that Bitcoin’s price rose 8.6% from its local lows of $80,500, with a bullish trend suggesting a rebound.
The breakout above the upper trendline of the flag at $87,200 on Wednesday, if confirmed, could clear the way for a rally towards the measured target of the flag at $96,800, representing a 10.6% increase from the current price. The positive Relative Strength Index (RSI), which has moved from oversold conditions to 51, supports this bullish momentum.
However, veteran trader Peter Brandt warned on Tuesday that Bitcoin’s rebound to $89,000 could be a “dead cat bounce” before another leg downward.
Disclaimer
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.